DRAFT – These minutes are not official until approved at the next regular City Council meeting.

Public Hearing and Special Meeting March 28, 2006

Members Present: Mayor Amy Tendrup, Amy Pifher, Lonnie Kacon, Jean Lexvold and Dick Salmi

Absent: none

Also Present: Ann McGarry, Tarry Edington, Gus David, Skip Duchesneau, Renee Willett, Nick Skarich and Diane Larson

Mayor Tendrup called the public hearing to order at 6:00 p.m.

Tendrup explained that the public hearing was being held on the proposed Tax Increment Financing (TIF) district for the WilderNest housing project. Tarry Edington introduced himself and Diane Larson of the Itasca County Housing and Redevelopment Authority (ICHRA), Skip Duchesneau of D.W. Jones, Inc. and Nick Skarich of Northland Securities. Duchesneau has been serving as a consultant to ICHRA on this project. Northland Securities is the City’s financial advisor and bond counsel.

Skarich was first to address the Council and stated that we’ve been working on this project for some time. He explained that the TIF district would be virtually identical to the district that was created for the Legacy Development housing project. Skarich had provided copies of the TIF plan for the Council and reviewed some of the information contained in the plan. There is approximately $70,000 in projects costs that will be paid for with TIF funds. The remaining funds will go toward interest payments, administrative expenses and capitalized interest. The project will increase the value of the property by $686,100

The TIF district will span fifteen years and Skarich presented a projected tax increment cash flow to the Council. He clarified that TIF does not use any income currently being received from the tax rolls, but rather uses the increase in the taxes due to the development.

Skarich noted that there was a question as to whether or not the project would be completed in 2006. Due to this uncertainty, he suggests changing the TIF plan to state that the TIF will be certified one year later than originally proposed and recommended that the Council approve the TIF plan with that change.

Tendrup noted that the Planning and Zoning Commission members were present and they had reviewed and approved the plan. Planning and Zoning Commission Chairman Gus David added that the Commission recommends that the Council approve the plan.

Duchesneau noted that the original proposal was for the City to bond for money and reimburse themselves with TIF money. Now ICHRA will be bonding for the funds needed and there is virtually no risk to the City. The TIF will be structured as a pay-as-you-go TIF just as the one that was created for Legacy Development.

Edington stated that this is an essential piece of financing for WilderNest. There are seven major sources of funding for the project and without any one of them, including this TIF district, the project will not happen.

As there were no further questions or comments, Tendrup closed the public hearing at 6:11 p.m. and opened the special meeting.

Tendrup called for approval of Resolution 2006-06: creating TIF district no. 1-2. Approval of the resolution was moved by Kacon, seconded by Pifher, motion carried unanimously (MCU).

The next item on the special meeting agenda was a recommendation from the Personnel Committee regarding the position of water/wastewater/maintenance assistant. Job descriptions for this position and for the Casual Maintenance Laborer position were presented with minor changes. Tendrup reviewed the recommendations of the Personnel Committee regarding the position of water/wastewater/maintenance assistant. These recommendations include approving the job posting for immediate advertisement, approving use of the training and experience rating form, setting the dates for interviews and setting the starting wage for the position. Pifher noted that we are not requiring this position to hold water and wastewater licenses. Tendrup explained that the Planning Commission did discuss this. According to state law, we are only required to have a licensed operator in the City for four hours per week. The Commission talked about the possibility of having the employee in this position attend the free training seminars and work toward getting licensed that way. In the meantime, a licensed operator from another city could be contracted with to cover those times when our Public Works Superintendent is out of town. Motion to accept Personnel Committee’s recommendations by Pifher, seconded by Kacon, MCU.

Mayor Tendrup adjourned the meeting at 6:24 p.m.

Angie Storlie

City Clerk